Microsoft has announced a global price hike for its Xbox console lineup, attributing the decision to the escalating costs of memory and storage components. The premium Xbox Series X, which previously retailed for £500, is now priced at £670. The entry-level Xbox Series S has seen a roughly 43% increase, moving from £300 to £430.
These adjustments follow similar trends across the technology sector. Sony previously raised PlayStation 5 prices by £90 earlier this year, and Valve has also released hardware at higher-than-anticipated costs. Industry analysts point to the surging demand for RAM and graphics cards—driven largely by the artificial intelligence sector—as a primary factor behind the increased hardware expenses.
The price adjustments have drawn criticism from consumers, with some expressing frustration that hardware released years ago is now subject to significant markups. While Microsoft had previously expressed a desire to avoid further price increases, the company cited the necessity of covering rising production costs.
This pricing shift occurs as Microsoft navigates a challenging period for its gaming division, which recently reported a dip in revenue. The company also initiated a major workforce restructuring in July, resulting in approximately 3,200 job cuts. As hardware costs climb, some industry observers suggest that consumers may increasingly turn toward game streaming services as an alternative to purchasing traditional consoles.
Source: BBC News
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